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RAPTOR
II
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Disclaimer:
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHERSLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.15260 Ventura Blvd., Ste. 2200Sherman Oaks, CA 91403
Copyright © The Connors Group, Inc., 2005.
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•Has had nearly 80% profitable trades since 1995.
•Has averaged 15.27% gains per winning trade, the highest gains per trade of any system that we have ever published.
•Is the first and only vehicle for trading long call options that we have ever released.
•Has had an average compounded annual return of 100.4% for over 11 years (from 1/3/95 – 3/31/2006).
•Has had double-digit gains in more than half of its trades.
•Traded as a portfolio, Raptor II has shown double- or triple-digit returns every year since 1995.
Raptor II Highlights
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Let’s Look At The Annual Simulated Returns
Includes 1 cent per share commission, 3-month T-Bill rates for cash, and does not include dividends received.
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Raptor II Returns
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Raptor II Returns
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Raptor II Equity Curve
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RAPTOR II PORTFOLIO BASICS
•Method focuses on buying stocks that have dropped in the short term
•Trades the entire universe of stocks
•Trades Long only – Usable for Call Options
•Volume Liquidity Filter
•20-day, and 200-day SMA
•2-period RSI
•10-period ADX
•100-day Historical Volatility (Volatility Standard Deviation)
•System portfolio has a max of 10 open positions.
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RAPTOR II PORTFOLIO
Divide your account into 10 slots. ($50,000/10 = $5,000.00).
When a trade is initiated, it occupies 1 slot. ($5,000.00).
If there are more Raptor II Portfolio stock candidates availablethan open slots allowed, then only place orders on stocks with the highest 100-day Historical Volatility. You should never have more than 10 open positions.
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Let’s Look At The Raptor II Portfolio Rules
andTrade Examples
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PORTFOLIO – LONG FILTERIf the 20-day ma of the Close*Volume of stock is greater than the (65-day ma of the Close*Volume of SP500) times .000003, it’s a candidate to trade.
Example:
A = Stock*Vol B = 20-day ma of A
C = SP500*Vol D = 65-day ma of C
F = D*.000003
If B is larger than F, then the stock is a candidate to trade.
S&P 500 Index uses NYSE Volume. Note: Some data vendors divide the NYSE volume by 1000 or
100. Please account for this in the above formulas.
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RAPTOR II PORTFOLIO
SET-UP RULES – Part 1
Set-Up Rules: (for Buys only)
1. The close is greater than the 200-period MA of daily closes
2. The close is less than the 20-period MA of daily closes
3. The 2-period RSI is less than 5
4. The 10-period ADX is greater than 20
5. The 100-day Historical Volatility is greater than 20
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RAPTOR II PORTFOLIO
SET-UP RULES – Part 2
Set-Up Rules: (for Buys only)
• Today’s close is at least 15% less than the close 5 days ago
- OR -
• Today’s close is at least 7.5% less than the close 2 days ago
• Entry: place limit buy order 8% below yesterday’s close
• Exit: 2-period RSI is greater than 70. Sell next day at open
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Current Examples of
RAPTOR II
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EXIT 20.75EXIT 20.75
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TRADING RAPTOR II
WITH
OPTIONS
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STRATEGY GUIDELINES
•Long Calls Options – the basic way to use options w/ Raptor II
•Nearest Month – Average Trade Equals 8 Days
•Out Of The Money Strike Price – Biggest Bang For Your Buck
•In The Money Strike Price – Higher Premiums
•Options Risk
•Discuss With Your Broker
•Education – Saliba, Corona, CBOE, Options Calculator
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18.50
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28.50
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TWO OPTION SPREADS
TO TRADE WITH
RAPTOR II(DISCUSS WITH YOUR BROKER)
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BULL – CALL SPREAD
•Assume stock is trading at Raptor II buy price of 18
•Simultaneously purchase 20 Calls / Sell 25 Calls
•Assume stock price jumps to 35
•Must provide 100 shares to the buyer of the short call at $25
•B-C Spread allows trader to buy the shares at $20 and sell them for $25
•Discuss With Your Broker
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BULL – PUT SPREAD
This strategy is constructed by purchasing one put option while simultaneously selling another put option with a higher strike price. The goal of this strategy is realized when the price of the stock stays above the higher strike price, which causes the short option to expire worthless, resulting in the trader keeping the premium. This type of strategy is also known as a Credit Spreadbecause the amount received by selling the put option with a higher strike price is more than enough to cover the cost of purchasing the put with the lower strike price.
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OTHER WAYS TO TRADE
WITH
RAPTOR II - PORTFOLIOS
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RAPTOR II PORTFOLIO-15
Divide your account into 15 slots. ($50,000/15 = $3333.33).
When a trade is initiated, it occupies 1 slot. ($3333.33).
If there are more Raptor II Portfolio stock candidates availablethan open slots allowed, then only place orders on stocks with the highest 100-day Historical Volatility. You should never have more than 15 open positions.
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Raptor II Returns-15
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Raptor II Returns-15
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RAPTOR II PORTFOLIO-20
Divide your account into 20 slots. ($50,000/20 = $2,500.0).
When a trade is initiated, it occupies 1 slot. ($2,500.00).
If there are more Raptor II Portfolio stock candidates availablethan open slots allowed, then only place orders on stocks with the highest 100-day Historical Volatility. You should never have more than 20 open positions.
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Raptor II Returns-20
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Raptor II Returns-20
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OTHER WAYS TO TRADE
WITH
RAPTOR II – ALL TRADES
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Raptor II Returns-All Trades
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FREQUENTLY
ASKED
QUESTIONS
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How do I receive the daily set-ups?We will provide you with Tradestation and Amibroker code which contain the complete rules of Raptor II. Each evening your software will scan through thousands of stocks in search of the ones that are able to meet its strict criteria. In addition to this, you will be able to receive the daily set-ups from a private password protected website that we maintain at all times.
How do I place my orders?You will place your orders for the upcoming day before the open. Most orders will be limit orders and you can find out anytime during the day or after the close whether or not your orders were filled.
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Can I “double-up” on my position?Never, ever add to an already existing stock position, regardless of which or how many portfolios you are trading.
Can Raptor II trade low-priced stocks?Yes. Many of the equities contained in Raptor II’s universe of stocks trade under $10. This is where you’ll find the large percentage gainers.
Is there a tutorial?Yes. We provide you with an online system handbook so you can fully understand the Raptor II Method. It will take you under 30-minutes to master the material.
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If I need additional help, will you provide me with ongoing assistance?Yes. TradingMarkets is committed to answering any questions you may have along the way. Just email us at [email protected] and we’ll get back to you as soon as possible.
Also, our TradingMarkets consultants are here daily (Monday-Friday) from 9:30 am - 7:30 pm (ET) to help you in any way needed.
1-888-484-8220 ext.1
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RAPTOR II PORTFOLIO
TRADING
Website access to set-ups begins Friday
April 28th, 2006
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THANK YOU!
GOOD LUCK TRADING
WITH
RAPTOR II!
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Disclaimer:
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHERSLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.15260 Ventura Blvd., Ste. 2200Sherman Oaks, CA 91403
Copyright © The Connors Group, Inc., 2005.